The 21st century has made it easier than ever to start up a business. We have tools at our disposal that none of our predecessors had, and a source of boundless information in the internet. However, it is these tools that make it harder than ever to start a business.
Starting Up
Anyone interested in starting up a business has access to these tools, which means the competition is plentiful, and quite steep. There is a constant need for new ideas, and a pressure to perform well in your business. A lot of would-be CEOs are too timid to start up a business.
As the old saying goes, “you regret 100% of the shots you don’t take.” Being disinterested in starting up a business is just fine. However, if you are interested, but let timidity get in your way, then you will only ever feel regret. That is why, in this article, we would like to talk about some tips for up and coming CEOs, who might not know where to start.
Pay Attention to the Demand
Knowing that there is a demand for something is the first step in creating a product. As an example, we can take a look at the online casino games market, which is dominating online entertainment. Internet casinos are a huge success, which might tempt many to start up an online casino.
However, before you jump into it you should ask yourself if it is worth starting up a business in an already successful industry. There are so many gambling websites that are of incredibly high quality, that it is hard to compete against the established businesses.
In other words, if there is too much demand for something, then it is likely already being met. At that point, it is better to look out for specific aspects of the iGaming market, rather than start up a fully new online casino. Innovation is key.
Innovate and Validate
We often venerate the concept of an idea. This is true in both business and in creative pursuits, like writing, painting, and music. However, the harsh truth is that ideas are cheap. It is easy to come up with a new idea, to the point that most people have come up with interesting, creative, and downright crazy concepts.
The trick to coming up with a good idea is to ensure that it is one worth having. That is where validation comes in. What we mean by validation is simple; do market research in order to confirm that there is interest in your idea.
If there is interest, research the target demographic. Go over purchasing statistics to ensure that the target demographic makes up a huge chunk of the spending force. Validation is what gives ideas their power. If more people are willing to accept an idea, then its importance grows much more.
Collaboration is Key
It is a harsh environment out there, and we were not meant to go it alone. This has been the rule that has ensured human survival. Humans have known one thing to be true, ever since they first began building civilizations; collaboration is key.
That is just as true for survival in the business world as it is true for survival in the real world. Many are tempted to start a business with their closest friends. While admirable, it is also a big mistake to mix business and pleasure, particularly if the person you are collaborating with has no business savvy.
Instead, find acquaintances that you can trust, who understand business, and who have a vision of their own. If you are lucky, maybe that would be your best friend. However, if the phrases “business acumen,” “responsibility,” and “trust with money,” don’t describe your closest associates, it is better to look elsewhere.
Once you have your team, it is also important to listen to their ideas and make them feel validated. Even if you disagree with the proposition that they’ve brought up, let them share their idea, and then bring up your own counter arguments. The key behind collaboration is respect, after all.
Seek Mentorship
Don’t be afraid to accept another person’s ideas and guiding strategies. The start-up world is fiercely competitive and cutthroat. But, there are always those who are willing to pass down their knowledge and inspire the next generation. Learn from an experienced businessman’s past, and you might learn something new.
The key to finding a good mentor is networking, of course. Building connections, meeting new people, sharing your contact information, and picking the brains of more experienced businesspeople is the goal here. These connections can later create to partnerships and can even open up new opportunities for you. So, be willing to learn new things.
Have an Exit Strategy
Having an exit strategy may sound dire. But, in reality it is a good thing. It basically what happens when a business owner, investor, stakeholder, or other party involved reduces or fully liquidates their stakes in a company, when certain financial goals have been reached.
While many CEOs don’t like to think about why an exit strategy is necessary, there is certainly a need to prepare one, whether you want to or not. There are several different methods for pulling off exit strategies:
- Acquisition: the smaller start-up is acquired by a larger company in the same industry. We’ve often seen this in online video publishing, where Google quickly buys any websites that may serve as YouTube competitors
- Initial Public Offering: often considered the best exit strategy, an IPO is what happens when the company shares its stocks to the public
- Liquidation: liquidation is the last-ditch effort in exit strategies, where all of the company’s assets are sold off. The proceeds are than distributed among the creditors, investors, and shareholders
- Merger: finally, a merger is exactly what it implies. The start-up company comes together with another company. They combine their resources, market share, and technology, to create a better overall product
